IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Regional Distribution of Foreign Direct Investment in China

Listed author(s):
  • Yingqi Wei
  • Xiaming Liu
  • David Parker
  • Kirit Vaidya

WEI Y., LIU X., PARKER D. and VAIDYA K. (1999) The regional distribution of foreign direct investment in China, Reg. Studies 33 , 857-867. This paper analyses the determinants of the regional distribution of both pledged and realized foreign direct investment (FDI) within China. The econometric properties of the panel data set are examined using a standardized 't-bar' test for unit root. The empirical results indicate that there exists a long run relationship between the spatial distribution of FDI and a number of regional characteristics. Provinces with a higher level of international trade, lower wage rates, more R&D manpower, higher GDP growth rates, quicker improvement in infrastructure, more rapid advances in agglomeration, more preferential policies and closer ethnic links with overseas Chinese attract relatively more pledged FDI. WEI Y., LIU X., PARKER D. et VAIDYA K. (1999) La distribution regionale de l'investissement direct etranger en Chine, Reg. Studies 33 , 857-867. Cet article cherche a analyser les determinants de la distribution regionale de l'investissement direct etranger en Chine, soit engage soit realise. Les proprietes econometriques de l'ensemble des donnees etablies a partir d'une enquete se voient examiner en employant un test 't-bar' normalise de la racine unitaire. Les resultats empiriques laissent voir qu'il existe un rapport a long terme entre la distribution geographique de l'investissement direct etranger et un nombre de caracteristiques regionales. Les provinces qui attirent proportionnellement plus d'investissement direct etranger engage sont celles qui ont un niveau de commerce international plus eleve, des taux de salaire moins eleves, un taux d'emploi dans la R et D plus important, des taux de croissance du PIB plus importants, une amelioration plus rapide de l'infrastructure, des progres plus rapides en faveur de la notion d'agglomeration, plus de politiques de faveur et des liens ethniques plus etroits avec les Chinois a l'etranger. WEI Y., LIU X., PARKER D. und VAIDYA K. (1991) Die regionale Verteilung auslandischer Direktinvestierungen in China, Reg. Studies 33 , 857-867. Dieser Aufsatz analysiert die bestimmenden Faktoren der regionalen Verteilung zugesicherter und realisierter auslandischer Direktinvestierungen (Foreign Direct Investment= FDI) in China. Die okonometrischen Eigenschaften des kombinierten Informationstragers werden mit Hilfe eines standardisierten 't-bar Tests' fur Einheitenlosungen untersucht. Die empirischen Ergebnisse deuten darauf hin, dass es eine langjahrige Beziehung zwischen der raumlichen Verteilung der auslandischen Direktinvestierungen und einer Anzahl regionaler Eigenschaften gibt. Provinzen mit hoherem Volumen internationaler Handelsbeziehungen, niedrigeren Lohnraten, mehr Arbeitskraften in Forschung und Entwicklung, hoheren Wachstumsraten, Bruttoinlandsproduktion, schnellerbewerkstelligten Verbesserungen der Infrastruktur, beschleunigtem Vorschreiten von Agglomeration, mehr Vorzugsentscheidungen und engeren ethnischen Beziehungen zu Chinesen in Uberseeziehen verhaltnismassig mehr zugesicherteauslandische Direktinvestierungen an.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 33 (1999)
Issue (Month): 9 ()
Pages: 857-867

in new window

Handle: RePEc:taf:regstd:v:33:y:1999:i:9:p:857-867
DOI: 10.1080/00343409950075498
Contact details of provider: Web page:

Order Information: Web:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Coakley, Jerry & Kulasi, Farida, 1997. "Cointegration of long span saving and investment," Economics Letters, Elsevier, vol. 54(1), pages 1-6, January.
  2. Bartik, Timothy J, 1985. "Business Location Decisions in the United States: Estimates of the Effects of Unionization, Taxes, and Other Characteristics of States," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(1), pages 14-22, January.
  3. Sergio Mariotti & Lucia Piscitello, 1995. "Information Costs and Location of FDIs within the Host Country: Empirical Evidence from Italy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(4), pages 815-841, December.
  4. Venables, Anthony J, 1993. "Equilibrium Locations of Vertically Linked Industries," CEPR Discussion Papers 802, C.E.P.R. Discussion Papers.
  5. Lall, Sanjaya, 1980. "Monopolistic Advantages and Foreign Involvement by U.S. Manufacturing Industry," Oxford Economic Papers, Oxford University Press, vol. 32(1), pages 102-122, March.
  6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
  7. Eduardo Borensztein & Jose De Gregorio & Jong-Wha Lee, 1995. "How Does Foreign Direct Investment Affect Economic Growth?," NBER Working Papers 5057, National Bureau of Economic Research, Inc.
  8. Head, Keith & Ries, John, 1996. "Inter-City Competition for Foreign Investment: Static and Dynamic Effects of China's Incentive Areas," Journal of Urban Economics, Elsevier, vol. 40(1), pages 38-60, July.
  9. Coughlin, Cletus C & Terza, Joseph V & Arromdee, Vachira, 1991. "State Characteristics and the Location of Foreign Direct Investment within the United States," The Review of Economics and Statistics, MIT Press, vol. 73(4), pages 675-683, November.
  10. Yoong-Deok Jeon, 1992. "The determinants of Korean foreign direct investment in manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 128(3), pages 527-542, September.
  11. Robert Grosse & Len J Trevino, 1996. "Foreign Direct Investment in the United States: An Analysis by Country of Origin," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 139-155, March.
  12. John H Dunning, 1980. "Towards an Eclectic Theory of International Production: Some Empirical Tests," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 9-31, March.
  13. F W Peck, 1996. "Regional development and the production of space: the role of infrastructure in the attraction of new inward investment," Environment and Planning A, Pion Ltd, London, vol. 28(2), pages 327-339, February.
  14. Culem, Claudy G., 1988. "The locational determinants of direct investments among industrialized countries," European Economic Review, Elsevier, vol. 32(4), pages 885-904, April.
  15. Horst, Thomas, 1972. "The Industrial Composition of U. S. Exports and Subsidiary Sales to the Canadian Market," American Economic Review, American Economic Association, vol. 62(1), pages 37-45, March.
  16. Zhang, Le-Yin, 1994. "Location-specific advantages and manufacturing direct foreign investment in South China," World Development, Elsevier, vol. 22(1), pages 45-53, January.
  17. Mark Casson, 1994. "Why are Firms Hierarchical?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 47-76.
  18. F W Peck, 1996. "Regional Development and the Production of Space: The Role of Infrastructure in the Attraction of New Inward Investment," Environment and Planning A, , vol. 28(2), pages 327-339, February.
  19. Xiaming Liu & Haiyan Song & Yingqi Wei & Peter Romilly, 1997. "Country characteristics and foreign direct investment in China: A panel data analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 133(2), pages 313-329, 06.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:33:y:1999:i:9:p:857-867. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.